SINGAPORE (July 25): The manager of Cache Logistics Trust has announced a 6.9% drop in distribution per unit (DPU) to 1.321 cents for the 2Q19 ended June, from 1.419 cents a year ago.
Distributable amount to unitholders in 2Q19 amounted to $14.3 million, 6.2% lower compared to the corresponding period last year.
2Q19 gross revenue fell 7.4% to $27.8 million, from $30.0 million a year ago.
The decline was mainly due to lower revenue from Cache Gul LogisCentre (formerly known as Precise Two) as a result of the conversion from a master lease to a multi-tenancy lease structure.
CacheLog also saw lower revenue due to the absence of contribution 40 Alps Ave and Jinshan Chemical Warehouse, which were divested in May 2018 in December 2018 respectively.
There was also a transitory downtime between replacement tenants in Commodity Hub during the quarter.
Property expenses fell 12.5% to $7.3 million, from $8.4 million a year ago.
This was primarily due to $1.5 million in land rent that was excluded from the property expenses due to the adoption of a new accounting standard.
Consequently, net property income was 5.4% lower at $20.5 million in 2Q19, compared to $21.6 million a year ago.
In 2Q19, Cache reported a committed portfolio occupancy of 90.0% and a portfolio WALE by net lettable area of 3.2 years.
As at end June, cash and cash equivalents stood at $12.2 million.
“Cache experienced a challenging quarter particularly due to the conversion of Cache Gul LogisCentre from master lease to multi-tenancy structure and transitory downtime between replacement tenants in Commodity Hub,” says Daniel Cerf, chief executive officer of the manager.
“Nevertheless, even though the economic environment continues to face headwinds and limited organic growth by logistics operators, we expect Singapore’s industrial supply market to stabilise bearing in mind the limited new supply entering the market,” he adds.
Units in Cache closed 1.5 cents higher, or up 1.9%, at 79.5 cents on Wednesday.
